Dell profits tank amid ownership tussle

Profits down 72 per cent as PC sales continue to head south

Dell has reported a steep fall in profits as the skirmish over the PC maker's future continues.

Profits for its second quarter nose-dived 72 per cent year on year to $204m (£130.5m) on the back of weak PC sales.

Although total sales were flat at $14.5bn, Dell's bread-and-butter End User Computing business suffered a five per cent fall in sales to $9.1bn.

Boosted by its recent acquisition of Quest Software, sales at Dell's Enterprise Solutions Group rose eight per cent to $3.3bn. Dell Software recorded an operating loss on sales of $310m. Services rose two per cent to $2.1bn.

"In a challenging environment, we remain committed to our strategy and our customers, and we are encouraged by increasing customer interest in our end-to-end solutions offerings and continued growth in our enterprise solutions, services and software businesses," said Dell chief financial officer Brian Gladden.

Dell gave no outlook, citing the definitive merger agreement it announced to take Dell private way back on 5 February.

The buyout attempt, which is being led by founder Michael Dell (pictured), has come under intense pressure from activist investor Carl Icahn over the summer. Later today, Icahn will attempt to scupper the $25bn deal in a Delaware court.

Icahn is arguing that the bid undervalues the firm but Michael Dell may hold up these results – which Dell decided to release five days early – as evidence his $13.75-a-share offer is a fair reflection of its value.